QUESTIONS WITH CORRECT ANSWERS
2025
What are the 4 types of economies of scale? - correct answer-
technical economies of scale, purchasing economies of scale, managerial economies of scale, economi
es of scope, diseconomies of scale
Advantage of using personal savings? - correct answer-Will not owe anybody the money back
What is a source of finance? - correct answer-
What is limited liability? - correct answer-
If the company falls into debt you only pay back what you invested
What is unlimited liability? - correct answer-
The owner is personally and fully responsible for all losses and debts of the business
Advantage of having a business plan? - correct answer-
Helps finance providers assess the business model;
Encourages analysis of the competitive position of the business and the market attractiveness
In what market would a cash flow forecast be useless in? - correct answer-Dynamic Markets
Why may a cash flow forecast be a benefit for business'? - correct answer-
They will know if they are able to pay suppliers back;
Advanced warnings of cash shortages
What is venture capital? - correct answer-It is money invested by outsiders